Why You Need Interruption Coverage
No business is completely disaster proof. Even if you have a strong bottom line and a great deal of financial security, a fire that causes extensive damage can put you out of commission for a long period of time. If that happens, you are going to need interruption insurance to bear some of the financial burden. Interruption coverage can compensate for lost income as well as other expenses.
2 Reasons Why You Need Interruption Coverage
Even the most basic business interruption policy takes care of lost revenue. There are several factors that can contribute to an income hit after a major disaster:
- Damaged production equipment
- Loss of retail store front
- Destroyed inventory
The fire restoration company you hire to repair your building doesn't just provide an estimate for the cost of the repairs. The assessment team can also provide an expected timeline for completing them. You can use this information to calculate how much income you expect to lose in that time frame due to the damage to your building.
If you expand your interruption insurance coverage to include expenses, you can be even more protected after a fire ravages your building in West Valley City, UT. This extra coverage can pay the cost of relocating your business while your building is under reconstruction. It may cover monthly expenses such as rent or mortgage payments as well as employee wages. The policy may also help you make your tax and loan payments until you can get back on your feet. In addition to replacing your lost revenue, your insurance may cover some of the things your income usually pays.
Purchasing some kind of interruption insurance is a good idea for any business that has a physical location. If your building catches fire or is damaged by a natural disaster, the cost of repairs is not your only concern. Replacing the money you would have made if the accident had not occurred is an important consideration.